The enthusiastic upward momentum in the morning triggered short-term profit-taking trades in the afternoon, creating noticeable pressure. The VN Index once again climbed close to the 1300-point mark, and a defensive stance resurfaced.
The volume of successfully bottom-fishing trades over the past few days, along with the volume of trapped trades in the 1300-point region, led to a sell-off, putting downward pressure on most stocks, including the strongest ones. In such sessions, the range of price suppression, coupled with large or small volume, reflects the resistance.
Many stocks had fallen below the reference price by the afternoon; such stocks are weak, at least for this session. For the rest, it’s necessary to observe how much the green price region is suppressed and the buying power’s ability to withstand the pressure. With the “original 1300-point” statement, the three-session rebound is still considered a “test” of the peak again, and it’s unclear if there will be a breakthrough. Therefore, short-term profit-taking or reducing holdings is normal.
Today’s highlight was the highly concentrated cash flow, and stocks with higher-than-average liquidity simultaneously experienced a significant increase in price range and a slight retreat from the peak, indicating robust and capable stocks that can absorb short-term holdings well. Stocks are differentiating in strength as cash flow has not spread widely. The blue-chip group showed better signs of attracting cash flow, maintaining more stable prices than midcap and penny stocks. This is reasonable because large cash flows usually select blue-chip stocks or stocks with sufficient liquidity to operate.
The market is still in the testing supply phase in the upward movement and within the old peak region. It’s important to note that the VN Index is not homogeneous with stocks, and its peak does not represent the peak of stocks. Therefore, many stocks that were sold off today were not actually at their peaks; they were only psychologically influenced when the VN Index approached its old peak. Therefore, when trading, it’s crucial to observe the specific foundation price of the stock.
Maintaining a positive market outlook, stocks that have risen rapidly in recent days may pause, and those still building a foundation may be bought at a slightly lower price due to overall psychological pressure. In sessions like today’s, robust stocks are evident, and a well-constructed portfolio remains unscathed.
Today’s derivatives market was challenging to profit from, as the VN30 index rose significantly, but most of the increase occurred at the very beginning of the session, while intraday fluctuations were narrow, and the basis was relatively wide. The VN30 index crossing the 1367.xx points were not effective for Long, and the breakdown points of 1367.xx did not yield the corresponding basis.
The profit-taking session this afternoon resulted in varying price performances. Looking purely at the VN Index, there were signs of weakness, but many stocks remained robust. Cash flow into blue-chip stocks was positive, and large-cap stocks provided support. The VN30 outperformed the VN Index significantly. The strategy remains to focus on buying stocks and flexibly employing Long/Short strategies in derivatives.
The VN30 closed today at 1360.58. The nearest resistance levels for tomorrow are 1368, 1376, 1380, and 1388. The support levels are 1357, 1348, 1341, and 1333.
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